BaltCap Private Equity Fund II acquires one of the largest property managers in the Baltic States – BPT Real Estate

BaltCap Private Equity Fund II managed by BaltCap, the leading private equity and venture capital investor in the Baltic States, acquired property manager BPT Real Estate AS which provides services in the Baltic States and Poland. BaltCap acquired the company from Northern Horizon Capital A/S.

BPT Real Estate is the leading property management company in the region. The team of 80 professionals manages more than 150 properties, whose total area amounts to 1 million square meters, and has more than 1000 tenants. The majority of the properties managed by BPT Real Estate are located in the Baltic States. In addition, BPT manages several properties in Poland.

“The real estate market in the Baltic States is becoming similar to those of the developed countries, where ever increasing role is played by the institutional investors. For this reason independent property management and real esate advisory services are in greater demand than ever before. BPT Real Estate is one of the best known brands in the region and, therefore, we chose to invest into a qualified team of professionals which provide top quality services. We expect that the investment and experience of the fund will help BPT Real Estate strengthen its reputation as reliabe and independent partner for those who invest into real estate in Baltic States and Poland”, - Šarūnas Alekna, BaltCap investment director, noted.

”The sale of BPT Real Estate is the logical conclusion of the last couple of years’ gradual process of establishing and empowering BPT Real Estate as a property management company that is independent of Northern Horizon’s core investment management business. The divestment allows Northern Horizon to fully focus on growing its core investment management business. In that segment we see many interesting opportunities to offer to our investor clients new investment products not just in the Nordics and Germany, but also in the Baltics where BPT Real Estate’s activities are focused. Furthermore, Northern Horizon will post-transaction continue to maintain and expand its own significant on-the-ground presence in the Baltics through our in-house investment management, fund administration and corporate services teams there”, comments Michael Schönach, Northern Horizon Capital GroupCEO.

“BPT Real Estate has been growing year on year basis in the market and has become the leading service provider in value adding real estate services. After full separation from Northern Horizon Capital group we will continue offering property management services to all Northern Horizon Capital funds in Baltics and Poland. Our ambition is to continue being the leading brand to guarantee the highest quality standards and to introduce new value adding services. With BaltCap as an investor we are confident that such goals will be reached even sooner and after separating from Northern Horizon Capital we can continue our growth fully independent“, comments Indrek Hääl, BPT Real Estate Group CEO.

The transaction is subject to approval by competition authorities and is expected to close in September 2015. Sorainen were acting as BaltCap’s legal advisor. Northern Horizon Capital is a real asset investment management firm with activities in the Nordic countries, Germany, the Baltics and Poland, and St.Petersburg, Russia. Northern Horizon focuses on offering its institutional investor base specialised strategies in emerging real asset subsectors such as carehomes, farmland, as well as selected commercial real estate strategies.